Can Zales Jewelers regain market dominance?
We don’t consider Wal-Mart a key competitor. Their business model is [customer] self-service, not knowledgeable associates like ours assisting customers. Many consumers don’t want to buy diamond jewelry from people who don’t know much about it. They prefer a knowledgeable fine jeweler like Zales, instead of a mass merchant. As for Sterling, this is a fragmented industry. Market-share opportunities come from many places. We expect to be the market leader again, but won’t try to match Sterling’s billion-dollar growth plan. Ours is disciplined growth, focused on key brands and formats proven successful, not on Sterling. Fine jewelry is now available to U.S. middle-class consumers at many sources, like the Internet, mass merchants, and warehouse clubs as well as jewelers and department stores. Does that affect your plans for Zales? Zales has the highest recognition [among consumers]; the Zale Diamond is the most purchased. Overall, it doesn’t matter where market share comes from. We have p
